In order to expand business, BAIC announced that Beijing-Hyundai had signed agreements with Hebei Cangzhou Municipal Government and Chongqing Liangjiang New Area Management Commission respectively to enter the industry areas for the fourth and fifth plant construction in China.
According to the agreements, the fourth plant in Cangzhou is expected to start before March 28, 2015, and the fifth plant in Chongqing is expected to build in the second quarter. Both plants will put into production in the second half of 2016.
The designed annual capacity for both plants is 300,000. The total capacity will reach up to 1.6 million with the addition of existing capacity, which will solve the bottleneck of serious shortage.
The latest data showed that Beijing-hyundai’s sale volume in China was 1.12 million in 2014, up 8.7% year-on-year, which was an overload operation for the existing capacity.